Abstract
This work first provides a basic understanding of the internal business processes related to mutual fund industry of India; then decipher that all players follow translucent flexible strategies in their disclosures of portfolios and the resultant outcome explains that external actors have equal flexible strategies. The momentum profit seasonality and the relation between this seasonality and institutional ownership, suggests tax loss selling and institutional window dressing play substantial roles in driving stock return momentum. This work suggests that investors trying to optimise return momentum concentrate their focus on quarter-ending and on institutions having large chunk of securities. In contrast, internally managed funds for educational institutions and foundations, which have own asset management services are not interested in window dressing of their portfolio. Finally, this work explores the flexible strategies adopted by different mutual fund management organisations on time line of their operations.
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Appendix I: Details of Funds Used as Sample for the Study
Appendix I: Details of Funds Used as Sample for the Study
Fund | Launch | Expense ratio (%) | 1-year return (%) | Net assets (Cr) |
---|---|---|---|---|
Axis Equity Fund | 5-Jan-10 | 2.59 | 41.42 | 812.02 |
Axis Long-Term Equity Fund | 29-Dec-09 | 2.74 | 74.31 | 1334.79 |
Birla Sun Life Dividend Yield Plus Fund | 26-Feb-03 | 2.37 | 58.85 | 1060.83 |
Birla Sun Life Equity Fund | 27-Aug-98 | 2.58 | 65.94 | 794.82 |
Birla Sun Life Frontline Equity Fund | 30-Aug-02 | 2.17 | 48.79 | 5038.74 |
Birla Sun Life Mid Cap Fund | 3-Oct-02 | 2.43 | 72.08 | 1116.79 |
Birla Sun Life MNC Fund | 27-Dec-99 | 2.72 | 65.18 | 529.57 |
Birla Sun Life Tax Relief 96 | 29-Mar-96 | 2.36 | 58.7 | 1515.99 |
Canara Robeco Equity Diversified Fund—Regular Plan | 16-Sep-03 | 2.62 | 43.6 | 665.17 |
Canara Robeco Equity Tax Saver Fund—Regular Plan | 31-Mar-93 | 2.68 | 49.69 | 714.98 |
DSP BlackRock Equity Fund | 29-Apr-97 | 2.34 | 61.23 | 2004.37 |
DSP BlackRock Equity Fund—Institutional Plan | 1-Apr-07 | 2.34 | 62.12 | 2004.37 |
DSP BlackRock Micro Cap Fund—Regular Plan | 14-Jun-07 | 2.78 | 117.12 | 522.43 |
DSP BlackRock Opportunities Fund | 16-May-00 | 2.71 | 49.84 | 516.13 |
DSP BlackRock Small and Mid Cap Fund—Regular Plan | 14-Nov-06 | 2.51 | 85.29 | 1122.22 |
DSP BlackRock T.I.G.E.R. Fund—Regular Plan | 11-Jun-04 | 2.47 | 65.6 | 1212.54 |
DSP BlackRock Tax Saver Fund | 18-Jan-07 | 2.66 | 58.81 | 813.77 |
DSP BlackRock Top 100 Equity Fund—Institutional Plan | 1-Apr-07 | 2.27 | 43.71 | 2994.93 |
DSP BlackRock Top 100 Equity Fund—Regular Plan | 10-Mar-03 | 2.27 | 42.95 | 2994.93 |
Franklin India Bluechip Fund | 1-Dec-93 | 2.18 | 40.7 | 5038.23 |
Franklin India Flexi Cap Fund | 2-Mar-05 | 2.33 | 61.31 | 1751.98 |
Franklin India High Growth Companies Fund | 26-Jul-07 | 2.64 | 75.19 | 575.24 |
Franklin India Prima Fund | 1-Dec-93 | 2.5 | 79.46 | 1412.7 |
Franklin India Prima Plus Fund | 29-Sep-94 | 2.31 | 57.87 | 2322.77 |
Franklin India Smaller Companies Fund | 13-Jan-06 | 2.72 | 102.34 | 587.71 |
Franklin India Taxshield Fund | 10-Apr-99 | 2.5 | 57.99 | 1157.71 |
HDFC Capital Builder Fund | 1-Feb-94 | 2.76 | 59.95 | 509.24 |
HDFC Equity Fund | 1-Jan-95 | 2.17 | 71.37 | 12886.1 |
HDFC Growth Fund | 11-Sep-00 | 2.5 | 49.89 | 1082.49 |
HDFC Infrastructure Fund | 10-Mar-08 | 2.87 | 96.69 | 996.29 |
HDFC Long-Term Advantage Fund | 2-Jan-01 | 2.6 | 59.72 | 986.69 |
HDFC Mid Cap Opportunities Fund | 25-Jun-07 | 2.42 | 90.01 | 4496.34 |
HDFC Taxsaver Fund | 31-Mar-96 | 2.25 | 68.03 | 4111.12 |
HDFC Top 200 Fund | 3-Sep-96 | 2.24 | 58.07 | 11657.4 |
HSBC Equity Fund | 10-Dec-02 | 2.64 | 38.8 | 538.34 |
ICICI Prudential Dynamic Fund—Institutional I Plan | 27-Mar-06 | 2.23 | 51 | 4253.86 |
ICICI Prudential Dynamic Fund—Institutional Plan | 13-May-11 | 2.23 | 50.87 | 4253.86 |
ICICI Prudential Dynamic Fund—Regular Plan | 31-Oct-02 | 2.23 | 49.71 | 4253.86 |
ICICI Prudential Focused Bluechip Equity Fund—Institutional I Plan | 23-May-08 | 2.23 | 46.4 | 5884.49 |
ICICI Prudential Focused Bluechip Equity Fund—Regular Plan | 23-May-08 | 2.23 | 45.26 | 5884.49 |
ICICI Prudential Infrastructure Fund—Regular Plan | 31-Aug-05 | 2.33 | 62.38 | 1498.33 |
ICICI Prudential Tax Plan—Regular Plan | 19-Aug-99 | 2.46 | 66.97 | 1874.08 |
ICICI Prudential Top 100 Fund—Regular Plan | 9-Jul-98 | 2.77 | 47.6 | 669.56 |
ICICI Prudential Top 200 Fund—Regular Plan | 1-Oct-94 | 2.6 | 57.11 | 530.15 |
ICICI Prudential Value Discovery Fund—Regular Plan | 16-Aug-04 | 2.28 | 88.25 | 4114.35 |
IDFC Premier Equity Fund—Regular Plan | 15-Sep-05 | 2.29 | 70.96 | 4311.16 |
IDFC Sterling Equity Fund—Regular Plan | 7-Mar-08 | 2.38 | 64.96 | 1490.17 |
Kotak 50 | 29-Dec-98 | 2.58 | 45.47 | 616.54 |
Kotak Opportunities | 9-Sep-04 | 2.68 | 48.21 | 597.6 |
Kotak Select Focus Fund | 11-Sep-09 | 2.82 | 56.63 | 527.77 |
L&T Equity Fund | 16-May-05 | 2.29 | 52.85 | 2123.21 |
L&T India Special Situations Fund | 22-May-06 | 2.68 | 54.11 | 649.51 |
L&T Tax Advantage Fund | 27-Feb-06 | 2.51 | 48.23 | 1277.15 |
Reliance Banking Fund | 26-May-03 | 2.34 | 69.4 | 1656.22 |
Reliance Diversified Power Sector Fund | 8-May-04 | 2.32 | 70.26 | 2036.91 |
Reliance Equity Opportunities Fund | 28-Mar-05 | 2.23 | 70.58 | 6162.18 |
Reliance Equity Opportunities Fund—Institutional Plan | 8-Aug-07 | 2.23 | 70.92 | 6162.18 |
Reliance Focused Large Cap Fund | 28-Mar-06 | 2.46 | 45.32 | 1036.73 |
Reliance Growth Fund | 8-Oct-95 | 2.2 | 66.3 | 4483.57 |
Reliance Growth Fund—Institutional Plan | 8-Aug-07 | 2.2 | 66.63 | 4483.57 |
Reliance Long-Term Equity Fund | 26-Dec-06 | 2.56 | 99.75 | 949.83 |
Reliance Pharma Fund | 5-Jun-04 | 2.64 | 65.62 | 809.37 |
Reliance Regular Savings Fund—Equity Option | 8-Jun-05 | 2.27 | 57.87 | 2317.97 |
Reliance Small Cap Fund | 16-Sep-10 | 2.75 | 141.22 | 566.21 |
Reliance Tax Saver Fund | 21-Sep-05 | 2.33 | 101.37 | 2439.23 |
Reliance Top 200 Fund—Retail Plan | 8-Aug-07 | 2.53 | 59.33 | 818.38 |
Reliance Vision Fund | 8-Oct-95 | 2.25 | 70.44 | 2706.02 |
Reliance Vision Fund—Institutional Plan | 8-Aug-07 | 2.25 | 71.06 | 2706.02 |
SBI Bluechip Fund | 14-Feb-06 | 2.44 | 52.73 | 930.58 |
SBI Contra Fund | 14-Jul-99 | 2.24 | 49.5 | 2026.07 |
SBI Emerging Businesses Fund | 11-Oct-04 | 2.37 | 64.43 | 1342.86 |
SBI Infrastructure Fund | 6-Jul-07 | 2.48 | 56.55 | 534.34 |
SBI Magnum Equity Fund | 1-Jan-91 | 2.37 | 43.25 | 1114.19 |
SBI Magnum Global Fund | 30-Sep-94 | 2.39 | 77.2 | 1067.96 |
SBI Magnum Multiplier Plus Scheme | 28-Feb-93 | 2.34 | 58.93 | 1206.03 |
SBI Magnum Taxgain Scheme | 31-Mar-93 | 2.08 | 59.67 | 4371.69 |
Sundaram Infrastructure Advantage Fund—Regular Plan | 29-Sep-05 | 2.85 | 70.96 | 680.66 |
Sundaram Select Mid Cap Fund—Institutional Plan | 15-Apr-08 | 1.87 | 83.98 | 1963.25 |
Sundaram Select Mid Cap Fund—Regular Plan | 30-Jul-02 | 2.29 | 83.04 | 1963.25 |
Sundaram Taxsaver | 22-Nov-99 | 2.41 | 50.08 | 1146.6 |
Tata Infrastructure Fund—Plan A | 31-Dec-04 | 2.67 | 55.88 | 748.06 |
Tata Pure Equity Fund—Plan A | 7-May-98 | 2.8 | 38.66 | 661.13 |
Templeton India Equity Income Fund | 18-May-06 | 2.46 | 48.35 | 945.69 |
UTI Dividend Yield Fund | 3-May-05 | 2.1 | 44.38 | 3043.74 |
UTI Equity Fund | 18-May-92 | 2.13 | 50.68 | 2903.94 |
UTI Infrastructure Fund | 7-Apr-04 | 2.19 | 61.85 | 1522.54 |
UTI Leadership Equity Fund | 30-Jan-06 | 2.46 | 42.26 | 571.09 |
UTI Master Equity Plan Unit Scheme | 31-Mar-03 | 2.22 | 45.04 | 1428.55 |
UTI Mastershare Fund | 18-Oct-86 | 2.21 | 44.8 | 2498.42 |
UTI Mid Cap Fund | 7-Apr-04 | 2.75 | 112.32 | 963.98 |
UTI Opportunities Fund | 20-Jul-05 | 2.19 | 46.04 | 4101.36 |
UTI Top 100 Fund | 20-May-09 | 2.47 | 44.1 | 597.25 |
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Sharma, M.K., Kumar, D. (2016). Investment Patterns and Quarterly Trading Flexible Strategies of Indian Mutual Funds Industry. In: Sushil, Connell, J., Burgess, J. (eds) Flexible Work Organizations. Flexible Systems Management. Springer, New Delhi. https://doi.org/10.1007/978-81-322-2834-9_19
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